The Hindu : Front Page : Flextronics to set up unit in State

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Friday, Oct 07, 2005

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Flextronics to set up unit in State

Special Correspondent

U.S. firms signs MoU with State Government to establish a $100 million facility

DESTINATION CHENNAI: Peter Tan, Managing Director and president, Flextronics (Asia), presenting a bouquet to Chief Minister Jayalalithaa at the Secretariat in Chennai on Thursday. — Photo: V.Ganesan

CHENNAI: . A leading U.S.-based electronics manufacturing services (EMS) provider, Flextronics, will establish a manufacturing unit at the SIPCOT industrial park in Sriperumbudur, investing about $100 million spread over five years.

An official release here said a Memorandum of Understanding (MoU) was signed between Flextronics and the Tamil Nadu Government in the presence of Chief Minister Jayalalithaa on Thursday.

A Fortune 500 company, Flextronics had considered locations in Karnataka and Pondicherry.

After detailed evaluation, it concluded that "Chennai is the best location offering maximum competitive advantage."

Welcoming a delegation led by Peter Tan, Managing Director and President, Flextronics (Asia), Ms. Jayalalithaa expressed happiness over its decision. Several companies starting with Nokia were making a beeline for Chennai, she said and hoped that the Flextronics facility would emerge as the largest among its worldwide operations.

Ms. Jayalalithaa told the delegation that the State had the most secure environment and infrastructure. It also had a great talent pool.

The State had enacted a Special Economic Zone Act, 2005, which had a variety of features to attract private sector developers and industrial projects.

Assures continued support

Ms. Jayalalilthaa hoped that the Flextronics management, which had been provided land at a concessional rate, would invite its vendors and component suppliers to make this SEZ a large electronics hardware cluster. She assured the company of the Government's "continued support and cooperation to enable it to grow from strength to strength," the release said.

The MoU was signed by Mr. Tan and Rameshram Mishra, Secretary (Industries), Government of Tamil Nadu.

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